Sigh of Relief at Last as Buhari’s Govt Announces Restructuring, Takeover Of Discos – Legit.ng

• No fewer than five DISCOs will be restructured and taken over by the federal government as announced by NERC on Wednesday 6 July
• The affected DISCOs , KEDCO, IBEDC, PHED, BEDC and Kaduna Electric, are said to be unable to repay loans they received to acquire assets
• Already, the new Boards taking over DISCOs have been approved as cooperation between the CBN and the Department of Energy continues

The federal government announced on Wednesday, July January the restructuring of five Electricity Distribution Companies (DISCOs) in Nigeria over their inability to repay loans they received to pay for assets purchased as part of the 2013 privatization.

This development was announced in a statement jointly dated ge Executive Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba, and the Director General of the Office of Public Enterprises (BPE), Alex Okoh, Channels TV Reports.

Those concerned DISCOs are as follows:

1. Kano Electricity Distribution Company (KEDCO)
2. Ibadan Electricity Distribution Company (IBEDC)
3. Benin Electricity Distribution Company (BEDC)
4. Kaduna Electric
5. Port Harcourt Electricity Distribution Company (PHED)

The failure on the part of the DISCOs was confirmed by the Fidelity Bank announced that it recently issued a call on the secured shares of KEDCO, BDEC, and Kaduna Electric.

Per the said statement, both Garba and Okoh stated that the Asset Management Corporation of Nigeria (AMCON) would temporarily be a placeholder for IBEDC, PHED is being restructured to avoid bankruptcy.< /p>

The heads of NERC and BPE noted that at the moment the new boards for the nightclubs have been approved and the office is working with the Central Bank of Nigeria (CBN) and the Ministry of Energy, to ensure there are no service interruptions during the transition.

The Department of Energy provides an update on the current power outage

Meanwhile , the Department of Energy had an update on the current Given decline in electricity generation across the country.

The explanation read in part:

“We would like to inform the general public that the current decline in electricity generation is based on The partial shutdown is due to the gasworks at the top to address repairs to critical gas processing equipment…”

Source: Legit.ng